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As rates rise, Hapoalim reports record profit

  • March 09, 2023

Bank Hapoalim (TASE: POLI) has reported a record net profit of NIS 6.5 billion in 2022, up 38% from NIS 4.9 billion in 2021. The bank said that the rise in profit was due to growth in its core activities, mainly its credit portfolio, due to macroeconomic changes that included interest rate hikes by the Bank of Israel as well as higher inflation.

Following the higher profit return on equity was 14.8% compared with 11.8% in 2021. In the fourth quarter Bank Hapoalim’s net profit was NIS 1.75 billion, providing a 15.3% return on equity.

The bank’s total income in 2022 was NIS 18 billion, up 24.5% from 2021, mainly because of its credit activities. Hapoalim reported NIS 13.5 billion income from interest, up 33% from 2021. The Bank of Israel hiked the interest rate from 0.1% in April to 3.25% in November.

Hapoalim president and CEO Dov Kotler said, “2022 began with deceleration of global economic activity, due to the war in Ukraine, and continued with mounting local and global uncertainty fueled by rising inflation and interest rates, in Israel and worldwide. The Israeli economy continued to demonstrate its resilience, even during a time of growing uncertainty. Over the last year, we continued the responsible growth of our credit portfolio, particularly in corporate and commercial credit and in housing loans; helped our customers cope with increased mortgage payments; and developed and introduced innovative products for our customers. We continued to stand by our customers as the first professional resource to turn to for advice when making important financial decisions, moved forward with more efficient use of resources, and maintained our focus on our business objectives, while achieving improvements in capital indicators and financial robustness.”

In its financial report Bank Hapoalim related to the judicial overhaul and said that the uncertainty, with a possible economic slowdown and slowdown in investments in the tech industry, could influence Israel’s credit rating and subsequently its fiscal situation.

Published by Globes, Israel business news – – on March 9, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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